Lenovo's mobile push to hit Taiwanese rivals
Taiwanese makers' global smartphone ambitions will be weakened by the mainland giant's purchase of Motorola's mobile unit, analysts say
Lenovo's purchase of the Motorola mobile unit will hobble two giant rivals from world hi-tech hardware hub Taiwan, further frustrating three years of efforts to generate world smartphone market share considered key to their long-term survival.
Acer and Asustek Computer will find it increasingly tough to vie with Lenovo as the Motorola deal reached in January gives Lenovo unique US market access and a wealth of mobile device patents, industry analysts say.
"The Taiwanese smartphone-tablet vendors, like Acer and Asus, have long struggled to make headway in global mobile markets," said Neil Mawston, a wireless device executive director with Strategy Analytics in Britain.
"The Lenovo-Motorola deal emphasises just how big the Chinese brands are becoming and how far behind the Taiwanese vendors are lagging today."
Lenovo bought Motorola Mobility for US$2.9 billion from Google, giving it a 6 per cent world market share, behind only Samsung and Apple. Once the deal gets regulatory approval, the mainland computer maker can use Motorola's extensive mobile-phone patents to make its own devices.
A bigger Lenovo will stunt Taiwanese computer makers by piggybacking on Motorola's long-term popularity in the US market, building on its own brand in China with Motorola patents and leading a smartphone price drop in the mainland market, analysts say. Acer and Asustek have no similar tie-ups with handset makers.
Over the past three years, Taiwanese builders of personal computers or motherboards have tried new products and unique marketing to gain world smartphone market share, which research firm Gartner says grew an estimated 3.7 per cent last year while sales fell 6.9 per cent.